what PHP version are you running?
it seems that in your php.ini safe_mode is enabled. safe_mode was disabled on PHP 5.3 and removed on PHP 5.4 if i'm not mistaken.
You should disable safe_mode in your php.ini or, if you don't have access to it, run (as your error message shows) composer as
php -dsafe_mode=0 composer.phar update
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